India’s strategic autonomy allows it to navigate this.

At the same time, Europe must realise that an FTA with India, regular high-level engagements, and defence industry collaboration do not imply a treaty alliance. 

India-EU FTA

India and the EU are the fourth- and second-largest economies, respectively, comprising 25% of the global GDP and accounting for one-third of global trade. Integration of the two large, diverse, and complementary economies will create unprecedented trade and investment opportunities. 

India was able to conclude this long-overdue trade agreement on equal terms after nearly 17 years of negotiations. India has secured unprecedented market access for more than 99% of Indian exports by trade value to the EU. This will also bolster the ‘Make in India’ initiative. Beyond goods, it unlocks high-value commitment in services complemented by a comprehensive mobility framework, enabling seamless movement of skilled Indian professionals.

Trade Implications

Bilateral trade in goods between the EU and India equalled €120 billion in 2024. EU goods imports from India stood at €71 billion in 2024, while EU goods exports to India reached nearly €49 billion during the same year. The EU will eliminate tariffs on over 90% of tariff lines, and 91% in terms of value. India will eliminate tariffs on 86% of tariff lines, and 93% in terms of value. 

Moreover, both sides will partially liberalise a significant additional number of lines, thereby bringing the overall coverage of trade liberalisation to 96.6% for India and 99.3% for the EU.

The FTA has a chapter dedicated to small and medium-sized enterprises (SMEs) and other provisions that will benefit small companies. Both sides will set up SME contact points, which will cooperate in identifying ways for SMEs to benefit from the opportunities offered by the agreement. 

Similarly, India’s agricultural and processed food sectors are poised for a transformative boost under the India–EU FTA, creating a level playing field for Indian farmers and agrarian enterprises. 

The negotiations for the trade pact were concluded on January 27, 2026. The negotiations, which began in 2007, had remained stalled for several years before being relaunched in 2022.

The FTA is expected to be officially signed by mid-December during a visit by Prime Minister Narendra Modi to Brussels. 

EAEU FTA 

Prior to that, the India-EAEU will come of age as well. Come November, India and the EAEU (which comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia) will hold a crucial round of negotiations to conclude the much-awaited trade pact.

With a combined GDP of about US$ 6.5 trillion, the proposed FTA is expected to expand market access for Indian exporters, support diversification into new sectors and geographies, enhance competitiveness against non-market economies, and deliver significant benefits to micro, small, and medium enterprises (MSMEs). The Terms of Reference (ToR) signed on 20 August 2025 outline an 18-month work plan aimed at diversifying markets for Indian businesses. The services and investment tracks will also be examined as the process advances.

A significant area of partnership between India and Eurasia is critical minerals and rare earths. The region is rich in natural resources, and India is in talks with Russia to extract critical minerals and rare earths. India and Kazakhstan are in initial talks to create a critical minerals partnership.  

Recently, on the sidelines of the BRICS Summit, India and the EAEU held a meeting to expedite the FTA signing process. 

For India, the agreement with the EAEU will open a market with over 180 million consumers and provide access to Eurasia’s transport and logistics capabilities. For the EAEU, it will significantly reduce non-tariff barriers and transaction costs, while giving access to one of the world’s largest and most rapidly growing markets. Simultaneously, India and Russia are in talks to conclude the Bilateral Investment Treaty. 

India is poised to leverage the emerging trade arrangements with the EU and the EAEU. That should open more markets and create more opportunities in terms of growth and employment. India should seek to balance these economic opportunities with its strategic ties, ensuring that neither comes at the expense of its strategic autonomy.

(The writer is a commentator on geopolitics and geoeconomics. Views expressed are personal.)